Domino’s shares lower as Q3 revenue lags estimates

Domino’s Pizza (DPZ) shares fell on Thursday after the titanic pizza chain reported third-quarter income and U.S. same-store gross sales that lagged expectations.

Revenue on the Ann Arbor, Mich., chain got here in at $120.4 million (U.S.), or $3.24 a share, up from $99.1 million, or $2.49 a share, within the year-earlier interval. Analysts surveyed by FactSet estimated $3.11 a share for the most recent quarter.

Income registered $998 million, up 3 per cent from $967.7 million a yr earlier. The FactSet analyst consensus referred to as for $1.03 billion within the newest quarter.

Domino’s inventory just lately traded at $474.31, down 0.4 per cent. The inventory has jumped 21 per cent in the course of the previous six months amid demand in the course of the pandemic. It has slipped 7 per cent up to now month amid concern about slowing financial progress and rising inflation.

The corporate mentioned U.S. same-store gross sales dipped 1.9 per cent within the newest quarter towards an analyst forecast of an ascent of 1.7 per cent. Worldwide comparable gross sales gained 8.8 per cent, in contrast with the estimate of a climb of 8 per cent.

“On a two-year foundation,” Chief Govt Ritch Allison mentioned in a press release, “our U.S. same-store gross sales had been up 15.6 per cent over the 2019 baseline, with our worldwide similar retailer gross sales [rose] 15 per cent.” Founder Jim Cramer discussed his continued bullishness for Domino’s last week.

Morningstar analyst Sean Dunlop put honest worth for the inventory at $410 previous to the earnings report, and he assigned the corporate a large moat.

Dunlop cites Domino’s “historic investments in ‘anyware’ ordering, a best-in-class e-commerce interface, and a combination that skewed towards supply (55 per cent), [even] earlier than the pandemic.”

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